{
  "rogueId": "fundraising.convertible_outstanding",
  "slug": "convertible_outstanding",
  "domain": "fundraising",
  "defaultLabel": "Outstanding Convertible Amount",
  "description": "Total principal value of SAFEs and convertible notes outstanding that have not yet converted to equity. These convert at the next priced round, typically at a discount or valuation cap (per the standard Y Combinator SAFE templates and the National Venture Capital Association convertible-note model). Common pitfall: a SAFE stack quietly accumulating between rounds can convert into 15–25% dilution at the next priced round, surprising founders who modeled \"we only sold 10% in this priced round\" math. Boards should always see the fully-diluted cap table including SAFE conversion.",
  "fieldType": "currency",
  "unit": null,
  "maturity": "general",
  "suggestedForStages": [
    "preSeed",
    "seed",
    "seriesA"
  ],
  "defaultOwningFunctions": [
    "Finance"
  ],
  "stageRelevance": {
    "preSeed": "core",
    "seed": "core",
    "seriesA": "recommended"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "Y Combinator Post-Money SAFE (2018+ standard form)",
    "sourceUrl": "https://www.ycombinator.com/documents",
    "sectionRef": "Post-Money SAFE — Definitions (Purchase Amount)",
    "publicationDate": "2018-09-01",
    "attributionNotice": null
  },
  "formula": "Sum of principal outstanding on all unconverted convertible instruments (SAFEs per the Y Combinator post-money SAFE template; convertible notes per the NVCA Model Documents). Pre-conversion — actual dilution depends on the next-round price and the SAFE caps/discounts.",
  "whyItMatters": "Hidden dilution that hits at the next priced round. A material SAFE stack changes the math on what a \"20% Series A\" actually costs the founders.",
  "interpretationGuidance": "When `convertible_outstanding` is more than ~10% of the company's next-likely post-money valuation, the board should require a fully-diluted cap-table walk-through at the next priced round modeling exercise. Highest-cap and lowest-cap SAFE conversion paths should both be modeled.",
  "relatedKpiIds": [
    "fundraising.pre_money_valuation",
    "fundraising.post_money_valuation",
    "fundraising.founder_dilution"
  ]
}